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Originally Posted by GeechQuest
Wouldn't that crush your stock price and your new valuation? You'd essentially give a win to the guys who want you to go under and will profit on you doing so.
Why not just issue a few million? Your stock price still rises as the shorts are still underwater by a ton.
5 Million shares issued right now would be swallowed in a heartbeat. Even if you clipped the stock down to $200, the shorts are still underwater in total and you just raised $1B in capital.
It would be smarter to leak shares this way until you find an equilibrium between shorts/longs, now you've got a new valuation for your company and have raised so much money that you're driving towards the future.
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This valuation is junk. It's shrewd corporate financial management. The company itself is not gaining anything from the stock price being where it is. Just remember that.
Issuing shares right now would be the prudent thing to do. As for share issuance, you don't "leak" shares. That just isn't how it works.